My family has mineral rights in Richland county and I am wondering if any of you have had any notices or activity from your landman or oil companies lately on renewing leases. We were told couple years ago now that everyone is pulling out of the area and oil companies are not interested in leasing land now.
Is this correct in your situations? Or as I have read are they keeping quiet which makes me wonder just what is going on.
I would appreciate any up to date info anyone may have.
Thank you, Rita
Rita,
The big fish (well financed operators) continue to eat the little fish (under-financed or bankrupt operators) because the big fish can buy proven reserves cheaper than drilling for them. In addition, the Big Fish are finding that they can tie up more land by drilling oil rich formations horizontally in areas with lower operating cost such as the large Permian Basin of W.Texas and New Mexico where they don't have pipeline problems.
Be Patient, the industry will return to Richland Exploration. Sooner with Trump presidency and much later if Hilary is elected. She is obligated to protect Saudi market share as the Global economy is manipulated.
In the meantime consolidate your family mineral estate so that when business picks up, you will have the most attractive package to it.
Gary L Hutchinson
Minerals Managment